Post by
phoenix_trader on May 16, 2022 1:48pm
Luckily, DMG does not have Bitfarms debt albatross
From the BITF MD&A today:
Long term debt financial obligations with contractual maturities, inclusive of interest on long-term debt, and the Company’s revolving credit facility, presented in thousands of U.S. dollars as of March 31, 2022, as follows:
March 31, 2022
2022 $ 122,964
2023 18,518
2024 and thereafter 2,717
$ 144,199
The Company’s credit facility, with an outstanding balance of $100.0 million as of March 31, 2022, is secured by Bitcoin, with the minimum value of Bitcoin pledged as collateral calculated as 143% of the amount borrowed. The Company is required to contribute additional collateral to the Lender any time the value of the Bitcoin pledged as collateral is below 133% of the amount borrowed. The Company also has the right to require the Lender to return any Bitcoin when the value of the Bitcoin pledged as collateral exceeds 143% of the amount borrowed. A substantial decrease in Bitcoin price may result in the Company being unable to meet the minimum Bitcoin collateral requirements, which could result in the disposition of the Company's Bitcoin pledged as collateral by the Lender or repayment of the facility in fiat currency on demand.